FERs Mainly

[JimmyJoe]

There's a difference between the investment practices of FERS and CSRS TSPtalkers. It's like they play with house money and we have to watch our pennies. So I'm creating this thread to focus on the FERS TSP investors. With any luck I'll make better decisions for myself and perhaps those of us that more readily have to use our TSP earnings upon retirement. To start with, those of use under FERS would be best served if we were denoted as such. Perhaps Tom could help us.

 

[tsptalk]

What do you mean Jimmy? How can I help - do you mean in a way to denote each member's retirement program status somewhere?

I may need to move this thread to another forum like strategies or something, depending on its purpose. Tell us more.

Thanks!

 

[JimmyJoe]

Let's talk. Please move to where we can. Thanks.

 

[JimmyJoe]

Since no one is adding to this. I think a dose of caution would have helped me save 15k. That dose would have come from a wisened FERS man. The CSR types are playing it to wild and loose. I'm left holding the bag. Well, fool me once...

 

[grandma]

Since no one is adding to this. I think a dose of caution would have helped me save 15k. That dose would have come from a wisened FERS man. The CSR types are playing it to wild and loose. I'm left holding the bag. Well, fool me once...

This is confusing to me. How do CSR and FERS differ in the tsp? And if you, JimmyJoe, are `left holding the bag' because you are FERS, you are saying that all the FERS folks on board are holding the bag, too.

Send a pm to tsptalk about what you need & your goals, so we can get this thread going; enlighten the rest of us.

Because the only difference I know (that I think I know) between the two is: all hired after 1985 were FERS w/Social Security , that the CRS folk (without Social Security) had the option of joining.

The relationship to the TSP funds and any bag is lost on me.
Thank you - grandma

 

[XL-entLady]

grandma, I'm just guessing here. But it may be that he's referring to the fact that most CSRS TSP accounts are much smaller than FERS accounts of a comparable age. And CSRS folks don't have to depend on their TSP accounts quite as much as us FERS folks do in retirement.

I wasn't positive what Jimmy Joe was asking, which is why I didn't offer my opinion. Because I always have an opinion. Sometimes two or three! :laugh:

 

[JimmyJoe]

grandma, I'm just guessing here. But it may be that he's referring to the fact that most CSRS TSP accounts are much smaller than FERS accounts of a comparable age And CSRS folks don't have to depend on their TSP accounts quite as much as us FERS folks do in retirement.

I wasn't positive what Jimmy Joe was asking, which is why I didn't offer my opinion. Because I always have an opinion. Sometimes two or three! :laugh:

Thanks for responding ladies. I want to be fair on my response because there are FERs folks who wished they were CSRS and there are FERs folks who have transferred from CSRS. Anyway, CSRs folks have their own retirement system that is great without their input of cash into the TSP. But for those of us who have to rely on the TSP for about half of their retirement, we have to be more careful of our investments and allotment input. I think there should be 3 denotions of TSPtalkers so that we all know from whence we speak. IFTs can then be made based upon our own personal and FERS/CSRS position. For example, now, because I am FERs, as soon as the oil dome does it's work on Thursday/Friday and we get a positive move from it, I may move from 90% in to 50% in. Actually I feel it was a blessing/minor miracle to get some of the money back on Monday from the previous weeks debacle. I can't take the pressure of international affairs in Europe messing with half of my retirement (independent wealth). Oh I still plan to make as much as I take from my TSP, but it will be on a lesser scale than from Brich and those with less to loose than myself. So with all due respect to the heavy hitters, and I do respect their comments on TSPtalk, I am lowering my TSP allotment aspirations. Hope that some on this forum may learn from my openness and fiscal apprenhension. Maybe they plan to not use it at all which is their choice and to them and all of you I say good luck. I still plan to talk or comment on the board often. I respect and enjoy all of your comments. :toung:

 

[XL-entLady]

Jimmy Joe, I feel your pain. I'm FERS, retired, missed being CSRS by six cursed days, drawing a monthly payment from my TSP account that is MUCH smaller than some.

I've been a member of TSPTalk for two years, and I'm grateful every day that I found this site. My experience has been that it's the very best place on the whole internet to learn about the TSP and about how our TSP accounts interact with financial markets as a whole.

And we do that all while we're among friends here most of the time and that means a lot to me too.

 

[saturneptune]

I am a FERS retiree and think it is quite obvious what he is saying. He is saying that it takes FERS, Social Security Supplement, and TSP to equate to a single CSRS annuity. The TSP funds that a CSRS retiree has is play money. If you wanted to equate a CSRS having to invest like a FERS person, then a CSRS would have to be willing to invest and take risk on about one third of their annuity from CSRS.

 

[Texarkandy]

I am a FERS retiree and think it is quite obvious what he is saying. He is saying that it takes FERS, Social Security Supplement, and TSP to equate to a single CSRS annuity. The TSP funds that a CSRS retiree has is play money. If you wanted to equate a CSRS having to invest like a FERS person, then a CSRS would have to be willing to invest and take risk on about one third of their annuity from CSRS.

This is true. Some FERS folks need to be more risk averse due to their personal situation. I know I am.

I missed being CSRS by 4 months and am now early retired (Fed LEO). I have a considerable stash in my TSP but have been 100% G since April 2007. I draw monthly life expectancy payments off of my account and will have to do so till age 59.5

I was not always so conservatively invested in my TSP. I moved my funds to the G Fund in 2007 due to
A. Getting close to retirement
B. Getting nervous about all the subprime news I was hearing back then

Due to my moving all funds to G in 2007, I was fortunate enough to be spared the downturn of 2008. I recognize, however, that at some point I do need to return to an allocation that provides opportunity for greater returns in order to keep up with and/or beat inflation. I would like to make a move with my TSP monies to diversify a bit, but am personally not comfortable enough that there isn't another "black swan" event on the horizon to do so just yet. (Needless to say I don't visit TSP Talk much anymore for TSP allocation tips.)

To the OP, all I can say is: "you puts your money in, & you takes your chances" - if you aren't comfortable with the risk of putting your money in, then ya should think about staying in the G.

If you feel someone else's investment advice led you astray - it's not their fault, but rather yours for taking the advice.

 

[XL-entLady]

This is true. Some FERS folks need to be more risk averse due to their personal situation. I know I am.

.....
To the OP, all I can say is: "you puts your money in, & you takes your chances" - if you aren't comfortable with the risk of putting your money in, then ya should think about staying in the G.

....

I agree with your post. And I think that is why it is imperative that we try to learn as much as we can so we can make informed choices. Faith Hill has a song called, "The Secret of Life" that absolutely nails it.

"The secret of life is there ain't no secret, and you don't get your money back!"

http://www.youtube.com/watch?v=xjqYkSf7pSE

 

[Zebra]

I I moved my funds to the G Fund in 2007 due to
A. Getting close to retirement
B. Getting nervous about all the subprime news I was hearing back then

Ditto, anyone nearing retirement should, in accordance with the FERS retirement seminar I attended, should carefully consider of moving more of your investments to the G Fund. I too move my chunk of TSP bucks to the G fund same timeframe Texasrkandy did. I have itched many times to move some of it back, but thank the Lord I didn't after last weeks plunge.

Did I say I am retiring in December 2010????? I am NASA FERS, 63, military retiree.....and ready to move on to another chapter of the adventure called:nuts: life!

 

[Frixxxx]

Ditto, anyone nearing retirement should, in accordance with the FERS retirement seminar I attended, should carefully consider of moving more of your investments to the G Fund. I too move my chunk of TSP bucks to the G fund same timeframe Texasrkandy did. I have itched many times to move some of it back, but thank the Lord I didn't after last weeks plunge.

Did I say I am retiring in December 2010????? I am NASA FERS, 63, military retiree.....and ready to move on to another chapter of the adventure called:nuts: life!

Goals are the most important thing with investments.

If you set a goal and work your way to it - THAT ALONE will dictate your allocation in your investments. If you fight yourself, you only harm yourself.

If you need 300K in TSP when you retire, then your allocation and investment style should morph with the markets and ability to save.

BALANCE - If you are giving MAX at 16.5K/yr and are 50 and retiring at sixty, you can also take advantage of the 5K/yr make-up. that means 21.5K a year for ten years is 215,000 in TSP + Interest.

But if you can't be risky, you have to be diligent and move money to make money. This is why Tom put this site up, because of the different ways you can get to your goals. Some of which you might not know exist.

EVERYONE. Set a goal! Do everything in your power to achieve it.

 

[JimmyJoe]

OK folks, I moved 5% more to the G fund so's I can sleep a little better with 25% in the G fund. It'll take effect Friday nite. Anyway, I'm betting the smaller oil box will work. I, being of an engineer sort, believe in my wrench turning brothers. When the gulf has a chance to clear up, the stocks will rise, proportionally. Don't know about Europe's crisis, maybe next week we'll deal with it. I think that the politics will show our American ingenuity in a great light with this oil box, and put the oil business in a better light. Still if each town in the U.S. would permit one or two of it's thruway roads to bicycle paths, we'll cut our dependence on the crud/crude. We have to urge our oil soaked town council members and our congress to cut the oil apron strings (asses). I'll be darned if I am going to ride around town with 2 tons of metal wizzing by me, and then if they hit me, can claim it's only an accident. You know how cars can be when driven. The Netherlands and some other European countries have well defined bike paths with concrete barriers separating the cars and bikes. Not this silly white line with a cute bike design painted on the road that we have here in the US. That's criminal actually. It creates a planned obsolensance of cyclists. Later.

 

[Texarkandy]

OK folks, I moved 5% more to the G fund so's I can sleep a little better ........

It's nice to be able to sleep at night knowing your money is all safe & secure - that is till you start laying awake worrying about it keeping up with inflation over the long term. :worried:

 

[JimmyJoe]

Somebody on this forum has been talking 'deflation' and I agree. If that's the case, civil servant retirees are going to be ok in the future as far as inflation goes, imo. I just don't want to lose much more this Spring so I'm moving to safety. The times are ify but not too ify to keep some money in stocks.

 

[JimmyJoe]

Hope to stay above my 01/01/10. The pres is gonna speak about the oil spill and if he talks about the containment box and I assume for that reason it'll work and stocks will go up on Monday. Hope to get some bounce then. Till then I'm moving more to 40% G. Then look for some safe harbor.

 

[JimmyJoe]

http://video.godlikeproductions.com/video/WORSE_THAN_WE_THINK

It might be time to get short. I think I'm going 80% G on Monday.

 

[JimmyJoe]

Movint to 65% G. The elephant in the middle of the room that we aren't talking about too much is the oil spew. Even if we plug it, the Feds are gonna be in for millions/billions paying off South and Central America not to mention each of the States its gonna affect and whoever. It's gonna be a bumby ride. It is gonna be a faux market with this spew in the factors. Screw oil. Just screw oil. Always a devils commodity.

 

[JimmyJoe]

WELL, LOOKS LIKE THEY DID SOMETHING TO STOP THE SPEW. OK SO I'M IN 60% TILL OTHERWISE NOTED. THAT IS ALL.